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1 Curtis S. Dubay & Chris Atkins, Movin' on Up: Blagojevich Tax Increase Would Move Illinois into Top 10 on State and Local Tax Burden 1 (2007)

handle is hein.taxfoundation/ffidxz0001 and id is 1 raw text is: TAX
FOUNDATION
April 16, 2007
Movin' on Up: Blagojevich Tax Increase Would Move Illinois into Top 10 on
State and Local Tax Burden
by Curtis S. Dubay and Chris Atkins
Fiscal Fact No. 83
Governor Blagojevich's proposal to increase tax revenues by at least $7.1 billion through two
new business taxes would give Illinois taxpayers one of the highest tax burdens in the nation.
Indeed, if the Governor's plan had already been fully implemented this year, Illinois taxpayers
would be paying the 9th highest tax burden instead of the 22nd highest.
Two weeks ago the Tax Foundation released its annual estimate and ranking of state and local
tax burdens.1 That report revealed that Illinois citizens are paying a state-local tax burden that is
middle-of-the-road: 10.8 percent of their income. That ranks Illinois 22nd highest among the 50
states. Among Midwestern states, Illinois has the second lowest tax burden, only bested by
Indiana where taxpayers pay 10.7 percent of income in state and local taxes (see Table 1).
Table 1: State and Local Tax Burdens in the Midwest Region, 2007
State and Local Taxes as a      50-State Rank
State              Percentage of Income          (1 is highest)
............................. s t ~ t e  ...........................................................................................h...e.t...................
Illinois                   10.8%                       22
Indiana                    10.7%                       25
Michigan                    11.2%o                      14
Ohio                      12.4%                        5
Wisconsin                   12.3%                        7
Source: Tax Foundation calculations based on data from the Bureau of Economic Analysis and
the Census Bureau in the U.S. Department of Commerce.
Governor Blagojevich's FY 2008 budget plan would raise this $7.1 billion in new revenue by
enacting new business taxes on gross receipts and payroll. The gross receipts tax would raise the
bulk of the revenue with a large, hidden tax on all businesses2 that would exceed any tax increase
passed by any state this decade.3

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